Chat Transcript May 8, 2006

Posted on May 9, 2006

Alan_WNY: We are the only ones?
pgarvey: hey, Alan I guess we are early
Alan_WNY: i thought about ten would be here already
Roger_Dawson: Hi Alan Cindy and P.
Alan_WNY: Me and Dawman :) :)
Roger_Dawson: Hi Yameen
yameen: hi everyone, Roger.
Roger_Dawson: Mike will be joining us any minute
Alan_WNY: he went to the airport yesterday for some reason


Roger_Dawson: Hi Bob. I spent three days last week at the Bellagio. Great hotel
Alan_WNY: Hi Mike
Alan_WNY: *bird*
Mike_Summey: Sorry I’m late. I was proof reading one of my weekly columns and let the time slip.
Alan_WNY: Hi Al
Roger_Dawson: Welcome Al
Bob_(vegas): did you see the hole in the ground next to the veneitian?
Al_Lee: Hi
Mike_Summey: Hi everyone.
Al_Lee: Hi,Mike
Bob_(vegas): that is the project I am currently working on
Roger_Dawson: Yes, Bob, I was at the Venetian the week before. You mean the hole next to Wynns?
Al_Lee: Hi, Roger. Haven’t chatted with you for a few weeks now
Bob_(vegas): corner of spring mtn and strip
Mike_Summey: Al, did you see today’s article about Texas having the largest number of foreclosures of any state during the last quarter?
Al_Lee: What hole? I am going to be in LV Friday
Mike_Summey: Oz
Bob_(vegas): did you see the president?
Roger_Dawson: I’m in Little Rock where I’m doing a program for Metropolitan National Bank tomorrow.
Al_Lee: Mike, no, I have not be at my computer most of today.
Bob_(vegas): he was here last week
Oz: hi mike
Roger_Dawson: Bob I visited his library this afternoon. Surprisingly bland for such a passionate man.
Mike_Summey: Foreclosures up 72% over last year and Texas is leading the way.
Mike_Summey: Hi Bob C
Al_Lee: It is not surprising, though. With the low interest rates and low prices of the past few years too many people who had no business owning a hose qualified to buy one.
Bob_Carr: Hello Mike
Bob_(vegas): would that be a garden hose al?
Al_Lee: ALl those people will now become tenants once again. What does that mean for us?
Al_Lee: house, soffy!
Mike_Summey: Al, maybe it’s all those interest only loans!
Mike_Summey: Hi Steve
Roger_Dawson: It’s going to be a great market for investors. Buy when there is blood on the streets.
Mike_Summey: Hi Vee
Mike_Summey: Vee, how are things in England?
Mike_Summey: Eric
Al_Lee: ike, if they used interest-only arms, you are right. All those arms are now starting to go up in rates.
Eric_NE: Hi Mike
Al_Lee: INterest-only isn;t the culprit it is the adjustable rate
Mike_Summey: Cindy, where are you from?
BozoB: Hey Everyone!!
Eric_NE: Hey Bozo
Mike_Summey: Hi Bozo…aloha!
BozoB: Eric, good to see you again
Mike_Summey: Hi thayes
BozoB: ke My friend :)
Vee-UK: Hey Mike. Thanks for the cards, I’m ordering them now. Viewing a property this Thurs! High prices but its a start :)
BozoB: Aloha Mike
Al_Lee: Aloha, Bozo
Mike_Summey: Vee, so the cards have already arrived?
Mike_Summey: Hi Lee
BozoB: Al, how are you doing?
Alan_WNY: What about the cards? Business cards?
Al_Lee: Great, Bozo. Yourself?
BozoB: I am excellent
Lee: Hi Mike
Al_Lee: I need a good business reason to go to Maui so I can write it all off
pgarvey: when the arms go up in rate, why not refi?
BozoB: Al, you also do other stuff besides just invest in real estate right?
Mike_Summey: We are having dozens of new people join the website each week, which is why you are getting the same message on the chat reminder emails.
Mike_Summey: Hi dave
Eric_NE: What’s the best way to approach a property management firm when your brand new and own no houses? I really don;t want to get pegged as some newbie who just read a book and is out trying to do something they know “nothing” about……which is pretty much true except for the “know nothing” part…..
BozoB: Hey Al, what do you want to go to Maui for?
Alan_WNY: Good question Eric
Al_Lee: Bozo, I want Mike to fly me to Maui in that King Air
Eric_NE: Thanks
Alan_WNY: Thinking of appraoching that this week myself
Dave-n-Richmond: Hi Mike
BozoB: lol ah, I see.
Al_Lee: If you wait for rates to go up to refi the arm’s you will be refi’ing at high rates.
Roger_Dawson: Eric, everybody started with one house. Tell them that you’re new, but you’re committed and you’re going to be big.
Bob_(vegas): why not tell them you are new and need dome info?
Dave-n-Richmond: Eric. nobody knows anything when they start
Vee-UK: Mike - yep arrived last Tues. Missed last wks chat had bank holiday! Looking in to UK style seller fiancing but still no joy ;-(
Dave-n-Richmond: or is it…everyone knows nothing.
Al_Lee: If you have arms, refi as soon as possible because rates will be going up
Mike_Summey: Eric, hou have to understand that being a newbie has it’s drawbacks. Leverage with property management firms is one of them. What you need to do is a sales job. Convince them that you are for real and won’t just be wasting their time. That’s what I had to do in the beginning.
Mike_Summey: Hi hottie & ritchie
Bob_(vegas): even if you have 4 years until the adjustment?
Dave-n-Richmond: Al…thinking of doing an ARM right now.
ritchie: Hi Mike
hottiekindhart: Hi Mike
BozoB: Roger, do you have different business Cards printed up for your different things of do you just have one card?
ritchie: It’s good to be back
Al_Lee: I need to leave the chat half way through tonight. My kids are doing Tae Kwon Do and they have convinced me to get back to doing it. I have a class tonight.
Mike_Summey: Where have you been ritchie?
hottiekindhart: Mike, how do you keep your credit score up if you buy 10, 20 ect. homes?
BozoB: Al, you are doing tkd?
Alan_WNY: I would thimk the firms wouldn’t give you a hard time at all if you were potential business
Al_Lee: Dave, do a fixed-rate loan–my advice.
Lee: Mike when you buy house and pay cash for it can you immediately borrow money on that house as collatoral for another and keep rolling house this way
ritchie: Mike, completely immersed in day-job work.
Mike_Summey: hottie, the best way is to buy right, pay well and keep good cash reserves.
Roger_Dawson: Bozo, I just have one card. I see consistency as the key to fame and inconsistency as the antidote to fame.
ritchie: Mike, gotta take care of the goose that lays the golden egg.
Al_Lee: Bozo, I was a red belt with a Korean instructor years ago and am now startign over at white belt
Dave-n-Richmond: Keep time on the house is 4 years. Arm is appealing.
Bob_Carr: al,i didn’t know they had an age group that high !
BozoB: lol, wow
Alan_WNY: Lot of kicking, huh Al?
Mike_Summey: Lee, yes you can.
Mike_Summey: Hi justin
Al_Lee: Bob, I bust all the charts.
BozoB: hat is going to be interesting. you are probably going to know more than the instructor
hottiekindhart: Mike, can you get a mortgage in a business or llc?
Bob_Carr: Bust the seams out of your pants maybe
Al_Lee: I started TKD when I was 35 and used to spar against 20-year olds.
BozoB: Roger, thanks a lot! I am trying to start a business as well but I would also like to use the card for Investing as well. Any tips?
Eric_NE: Hey Mike, what does your business card look like?
BozoB: 1 and 3 step?
Mike_Summey: hottie, I own all of my properties in llcs, and I get loans in the name of the llc, but I still have to sign personally for them.
Lee: Mike would you advise if you have the cash to buy like a 100,000 dollar house cash and then roll as fast as possible into more and more homes or 10,000 down on 10 homes
Mike_Summey: Eric, ask vee-uk
Dave-n-Richmond: Here in richmond the market has gotten sluggish. I’m thinking the buying oppportunities will start to materialize.
Alan_WNY: I would think the instructors would advance u pretty fast, no?
Eric_NE: Hey Vee, what’s mike’s card look like?!?!?!?!?
Eric_NE: :D
hottiekindhart: mike, thank you
Al_Lee: Alan, I don;t care about rank. I just like doing it. I stopepd testing at red belt because I didn’t care about being a bladk belt. I jsut wanted to be in the class to train with them.
pgarvey: Mike, why do you use a LLC instead of a trust?
Alan_WNY: Mike, who do you go through to have your cards made?
Vee-UK: Eric - its a card man, just a card!! Only kidding - British Humour :-)
BozoB: Now that is one of the best reasons for Training that I have heard yet.
Lee: Hottie what area are you investing in?
Mike_Summey: Lee, if you have $100,000 cash, you can buy for cash, finance the property to get cash out and keep buying. That’s easier than trying to put 10 down on each one and get new loans to buy.
hottiekindhart: rental homes. we have 2 now,but are trying to buy them through our business name
Dave-n-Richmond: I don’t think a trust offers you the legal protection an LLC does.
ritchie: Al, I’ve noticed the popular media has been mentioning Texas lately as a real estate bargain, and I think of you each time I read that.
BozoB: Mike, you also get better interest rates when you take out equity than when you get a new mortgage right?
hottiekindhart: Mike, one of our homes has a loan in our llc and we perosally signed for it
Mike_Summey: pgarvey, I do it for estate planning purposes.
Al_Lee: Regarding RE: I am negotiating to buy 10 acres of buildable land and plan to build about 120 rentable units on it. It is south of Dallas just beyond where the appreciation has jacked priced up for the land and within commuting distance. I will be looking for investors to split it with me or I will use financing and do it myself.
Mike_Summey: i Penny
Vee-UK: Eric - same size, good photo to the right, green background. Name, “I buy income ….” n contact details
Penny: Hi Mike!
Dave-n-Richmond: hottie who did you finance thru for that loan?
BozoB: Hey Penny!!
Roger_Dawson: Hi Penny!
Al_Lee: Ritchie, thans for thinking of me. I send out news articles to our club members every week with reports of what a bargain it is here.
Penny: Hello Bozo!
Mike_Summey: Bozo, that’s correct most of the time.
hottiekindhart: Mike, small local bank, M&F Bank in Jackson, ms
Penny: Awhhh, & Roger, hello.
Mike_Summey: hottie, you will usually have to sign personally unless the LLC has a huge equity.
BozoB: OK, I see. thanks
Alan_WNY: :<
hottiekindhart: Mike, what do you think is “huge” equity?
pgarvey: Al, where is the best area to invest in Texas right now?
BozoB: Does anyone here use business plans for their Real Estate?
Mike_Summey: Has everyone been reading my weekly column. The one I send the link to in the chat reminders?
Mike_Summey: hottie, more than 50% equity in the properties owned by the llc.
steve: al, are those rentals going to be stick-bilt, modular, or a mix?
Al_Lee: pgarvey, I invest in the d/fw metro area. Anything in a 50-mile radius is a good bet
Al_Lee: steve, stick
hottiekindhart: Mike, I am brand new. will I get the weekly column?
ritchie: Mike, is it ever a good move to buy a property with negative cash flow? Where the NOI does not cover the cost of money? For example, if you can buy the property for 10% below comparable market value but the rent ratios are still so low that it does not cash flow initially.
pgarvey: Al, do you invest mostly in SF or Multis?
BozoB: Hottie, it is sent in the e-mail when you sign up for the newsletter
Mike_Summey: hottie, are you registered as a “new user” on the website?
BozoB: it is sent with the chat reminders
Alan_WNY: Why buy the alligator?
hottiekindhart: Mike, I just registered 2nite
steve: al, i’m interested in modulars and i recall you mentioned before. did you find it cost prohibitive?
Al_Lee: pgarvey, mostly in sfh, but this construction project will be 30 4-plexes built in 3 tranches of 10 buildings (40 units)
Vee-UK: Eric - was that enough info/details?
Vee-UK: Mike - llc?
Mike_Summey: ritchie, I would never, never, never buy a property with a negative cash flow. Good way to go broke!!!
ritchie: Mike, re: column, I especially liked the column regarding how to get a raise. People don’t realize how much of a difference attitude and personal repsonsibility make a difference.
Mike_Summey: hottie, you will get it fromnow on. Where are you located?
Al_Lee: steve, I intend to try to use the module construciton I have talked about on this project, but I have a premonition it will be more costly and these units are designed to make money at $550-$650 rents
Eric_NE: Vee, yeah….lol….thanks
hottiekindhart: Mike, jackson, mississippi.
Alan_WNY: Ritchie wanted to start a crocodile farm :o
Mike_Summey: vee, llcs are Limited Liability Companies. You may not have that in England.
Dave-n-Richmond: Al, modular has become more expensive than stick built around here.
Al_Lee: The modular construction Ilike is steel and concrete and lasts forever, but the cost of materials has gone up a lot.
hottiekindhart: Mike, my husband has spoken with you before and said you sold advertising to his customer in Ashville, NC..Hunter Chevrolet
pgarvey: Mike, where is the best areas to invest in NC, what do you think about the Charolette area?
Vee-UK: Mike - you own the shares in the co, and the co buys the property? and why?
ritchie: The problem that I am seeing is that in my market rents are low and prices are high. That may turn around as apartment vacancies are drying up.
Dave-n-Richmond: pgarvey…is that name reference to the rock singer?
Mike_Summey: Hottie, yes Hunter Chevrolet was one of my customers when I was in the advertising business. Who is your husband. Would I know him?
Alan_WNY: pgarvey, I was thinking og going to eastern NC
Lee: Mike while you were building your business was there anything special that like the light just turned on and you said if I would have understood this from the start I would have started sooner.
hottiekindhart: Mike, Corey Kindhart. I don’t think you met him personally, just on-line
Eric_NE: 40 year mortgages, “Eric_NE’s thoughts”: Pay way more interest (tenants pay it). Probably bad if you are never going to sell. Would enable you to buy a lot of properties that the numbers just won;t crunch on with a 15 or 30 year mortgage. If the numbers crunch go for it, let the house double in value. Refinance to a 15 year note (that the NOI will cover). Use the proceeds to by more property or pay off a different one, boosting your cash flow, all from a deal that “won’t work” with more traditional financing. Any thoughts?
pgarvey: Alan, why?
Mike_Summey: pgarvey, Charlotte is a great market. Much better than Asheville. The prices there have not gone anywhere near a crazy as they have here.
Alan_WNY: I think I will love that area and Mike said the investing is good
steve: al, i’ve been looking at total modulars -just stack ‘em and rent ‘em; but most of the total modular building systems are back (south)east.
Al_Lee: steve, I am not interested in modular constructionif the product will not stand up and last–and appreciate–like a standard house.
Mike_Summey: Lee, the most startling thing for me was to see how income could snowball with patience. Nothing magical, just patience and persistence.
Dave-n-Richmond: Mike how many did you buy last year?
Alan_WNY: Even though Mike doesn’t advise me with my business cards
pgarvey: Alan, Eastern NC covers what towns?
Mike_Summey: Eric, do you have the Offer Generator program?
Alan_WNY: I wanted to be about an hour away from Wilmington…..not exactly coastal though
steve: al, i agree. i know you have to leave soon…can i discuss your project in more detail this week?
Dave-n-Richmond: we have a contract on one right now and I am trying to get another under contract. did 2 last year. Sold one…I regret that.
Eric_NE: The demo.
Mike_Summey: Hi jepcontractor
ritchie: Mike, what would you say was your number one most effective lead generating technique?
Al_Lee: steve, yous. Ifg you go to my website, http://www.RentHouses.org and click on “email Al” we will be in contact.
jepcontractor: hello all
Eric_NE: Good question ritchie
Al_Lee: steve, that was supposed to say “Steve, yes. If you…”
Mike_Summey: Dave, last year was the first year in over 30 that I did not buy a single property. I’ve already bought two this year and have offers out on several more. Last year was such a hot sellers market here that I spent my time upgrading existing properties rather than focusing on buying.
pgarvey: Al, do you use one property management co in Texas or you have a few that you use?
steve: al, i’ll do that.
Dave-n-Richmond: good move mike. yeah we can feel the change in tide here in
Lee: Mike I heard on your cd that you have found paticularly divorce situations have been good. Do you market to Divorce attorneys or anything like that to find divorce situations?
Dave-n-Richmond: hmond also
Mike_Summey: ritchie, getting out and riding the neighborhoods…without a doubt.
Dave-n-Richmond: richmond
Al_Lee: pgarvey, I have one favorite propery manager, but I have used several and still do use more than one because some properties are in locations too far away for my favorite.
Dave-n-Richmond: I am still having trouble making contact with good realtors who know what the heck I am doing. Many of them just don’t get it.
Eric_NE: Mike and Al, do you think you’ll ever reach the point where you stop buying houses and just focus on……vacations? Or will you be going full steam until you can no longer do it?
Mike_Summey: Lee, I try to leave my cards with bankers, real estate agents, attorneys and anyone else who may be able to give one to a potential seller.
Bob_(vegas): I’ll second that Dave
Al_Lee: Eric, my kids will just take over when I am too old to cut the mustard–in about 30-40 more years.
Mike_Summey: Roger, did you go to sleep?
ritchie: Dave, I share your experience. The realtors don’t get it. If I talk to a realtor I prefer to speak to the sellers agent directly. If something were to happen they would not be splitting a commission.
Alan_WNY: Mike, I thought you were going to answer my questions today
Dave-n-Richmond: I think the realtor issue will change soon also. Because I have bought two last year and am buying another.
Al_Lee: OK, gotta go suit up and take my licks.
Al_Lee: Goodnight all
Mike_Summey: Eric, it has become a game I enjoy playing. I don’t need any more money, but playing the game is so much fun it cause the income to keep growing. I guess I’ll stop when I die.
Dave-n-Richmond: well they don’t have too much reason to talk to an investor in a sellers market
Mike_Summey: Alan, what did you ask? I must have missed it.
ritchie: I have to laugh when I hear you guys talking about markets slowing down. Raleigh area has been hot in the past year.
hottiekindhart: lee, r u talking to me?
Dave-n-Richmond: they prefer to deal with buyers who will get emotionally attatched to the house.
Vee-UK: Mike - So you own shares in your llc, which in turn buys the properties? If thats so, whats the advantage? *)
Eric_NE: That brings me to my next question. Will you just hand over all the properties to your children? Inevitable wealth would seem to be a huge motivator to be lazy……I can’t think of a good way to keep the motivation up once they realize that they’ll be making a TON of money some day even if they do nothing…..just hope my good parenting keeps them from being that type of person
pgarvey: Mike, you invest solely in NC?
ritchie: Although as Mike said I have the impression Charlotte is much more reasonable if not under valued.
Alan_WNY: About business cards…The problem I am getting is that I can’t get the stock I like Who do you recommend going too. Mom & Pop?
Roger_Dawson: No Mike, I’m still here but I’ve been on the go since 4am and I’m losing steam.
Mike_Summey: Roger, that’s why I asked if youwent to sleep. I know you are tired.
pgarvey: How are the rents in Charlotte?
Dave-n-Richmond: Hey
Bob_Carr: Roger,When are you going to be out on the east coast
Eric_NE: Alan, have you looked at www.vistaprint.com?
Dave-n-Richmond: roger I could have used some of your negotiating wisdom in the close on this house we just sold
Bob_(vegas): Roger are you in the Golden State Real Estate Investers Club?
Mike_Summey: Vee, I own the entire llc, but it is considered a separate entity from me.
Roger_Dawson: Bob, I’m speaking in New York on Thursday to a corporate client.
Dave-n-Richmond: young couple and the guy’s dad were the buyers. They negotiated right thru the close. Drove me insane
Alan_WNY: Hmm… Eric. You use them?
Roger_Dawson: No, Bob, I’m not.
ritchie: Mike, when are you coming back to Raleigh?
Mike_Summey: Alan, I use Golf Associates. I think their website is gaprinting.com
Vee-UK: Mike - whats the main benrfit for owning the llc?
Eric_NE: Not yet…..probably going to though.
Bob_(vegas): they and silver state are meetin at Primm in july
Bob_Carr: Roger,I was hoping to bring my sales team to hear you in a public seminar
Mike_Summey: pgarvey, I don’t know about the rents in Charlotte.
pgarvey: Roger, I was listening to you Power Negoiating CDs today, I got them last week.
elba_NY: Good evening everyone.
Eric_NE: Better late than never Elba!
Alan_WNY: Mike, should I avoid places like Office MAx & Staples…or doesn’t it matter?
Bob_(vegas): still NY elba?
ritchie: Vee, some people use llc’s for protection from predatory lawsuits.
elba_NY: Hey Eric, Yes Vega my friend
elba_NY: vegas
pgarvey: I notice alot of the stuff was on the weekend millionaire CDs as well
elba_NY: We did not close on that house after all.
ritchie: Vee, although every landlord should also have a personal umbrella liability policy.
Eric_NE: Win any money Elba?
Mike_Summey: Vee, the main benefit for me is that it lets me do things with my estate planning I could not do if I owned the properties personally.
Roger_Dawson: Great Pgarvey. I hope you enjoyed the CDs
Mike_Summey: Vee, the properties are treated as personal property not real property when it is in an LLC
Dave-n-Richmond: what kind of things mike? those of us with delusions of grandeur want to know.
Mike_Summey: Hi elbe, where have you been?
pgarvey: Mike, what is involved in estate planning?
elba_NY: Cant lose money on something you dont buy. But did not win any either.
Penny: thanks mike
Roger_Dawson: Bob, I played in a golf tournament at Primm the week before last. Those are two great courses.
Mike_Summey: Alan, most any print shop can do business cards. It just depends on how slick you want them to look.
elba_NY: Mike our baby was ill last week. Then my husband and I caught what he had
elba_NY: How was last weeks chat. Great I imagine.
pgarvey: Roger, I do enjoy them, it makes my 1 hour commute seem like 1/2 hour :-)
Alan: gaprinting.com has ended its website I believe
Dave-n-Richmond: Roger did you see my comment about the guy showing up for inspection before the close and trying to squeeze me for more allowances?
elba_NY: Hi Roger, Penny, Yameen
Mike_Summey: pgarvey, that’s a huge subject that you should consult an estate planning attorney about.
Penny: Hi elba, how are you. I was late tonight too. Glad you made it.
pgarvey: k, Mike
Roger_Dawson: That website for cards is www.golfassociates.com
elba_NY: We are good around here. Glad to see you too.
Bob_(vegas): Is anyone aquiring property “subject to”??
elba_NY: Would you guys believe my broker messed up our deal?
ritchie: Mike, can you comment on the quality and location of homes in your neighborhoods? I recently looked at a house that would barely cash flow with a section 8 tenant, but it is an old house that is only partially rehabbed, and I have cold feet. I know I would never want to live there but I also understand it is an investment.
Roger_Dawson: Dave, no I missed that. They won’t do that to you if they believe you have other options. Let them know that you have other buyers lined up.
Mike_Summey: Alan, the company is Gold Associates Scorecard Company in Asheville. Google them and you will find the contact. Their phone number is 828-252-9867.
yameen: Hey elba!
Mike_Summey: Golf Associates
Dave-n-Richmond: Hey mike , speaking of professionals, I have had a hard time finding an accountant who understands investments in real estate.
Roger_Dawson: Mike, isn’t it golf associates?
Vee-UK: Ritchie - Thanks but in the queens english please! Predatory .. Umbrella Policy? %)
Eric_NE: Ritchie, would you go there alone at night?
elba_NY: After my husband wrote a letter explaining employment situation she wrote a comment that sent a red flag to the underwriter. The seller ended up pulling out.
ritchie: Eric, probably not in the middle of the night, but early evening yes.
Alan: Thanks Mike..I might play a few holes first :D
elba_NY: However we are using the Offer Generator on another property. Got to keep on going :p !
Roger_Dawson: Bob, if “subject to” means the buyer assuming the existing mortgage, be sure that you get the lender’s permission to assume.
Mike_Summey: ritchie, that’s why we developed the Offer Generator computer program. It will teach you hundreds of ways to buy properties other than just conventional bank financing.
ritchie: Vee, I am referring to the fact that some landlords are worried about tenants looking for an excuse to sue them and take their assets.
Dave-n-Richmond: roger they did it on a Thursday afternoon. I had my electrician in there certifying things the next morning and at 11 they came back and tried some more. I knew they had their stuff in a moving van…so at 2 I told my realtor to let them know I probly wasn’t going to sign the final papers and wouldn’t authorize the hud statement.
Eric_NE: I’m new but I think it may be better to stick with “blue Collar” neighborhoods……with more pride of ownership.
Dave-n-Richmond: s moving in and it was looking to rain for the whole weekend. I went to a long late lunch.
ritchie: Vee, the umbrella policy covers you against liability claims, for example if someone is injured on your property.
Roger_Dawson: Good strategy Dave.
elba_NY: I agree with you Eric. People who like to work, work hard to keep a nice place for their family.
Dave-n-Richmond: When I called back at 330 I told them they had till 1700 hrs. and then I was done with them one way or another.
Vee-UK: Ritchie - the cheeky blighters! Will look into it under british law.
Mike_Summey: Alan, are you haveing trouble staying in the chat?
Dave-n-Richmond: I was upset with myself for letting them get me so wound up.
thayes: Mike, I live in the Hickory NC area which is saturated with foreclosed property due to the down turn in the textile and furniture industry. I have a good friend that is a real estate agent that specializes in foreclosed property so I have an inside edge. I have little extra cash flow at this point after having a child via ivf. What would be my best first step in getting started so I can spend more time with my new son and not working for someone else?
ritchie: Vee, keep in mind we are a litiguous country.
Alan: I think so! I have no idea why this happens
pgarvey: Mike / Roger, do you buy real estate in other states?
elba_NY: Congrats thayes.
Roger_Dawson: pgarvey, everytime I’ve tried it it has been a headache.
Alan: Mike, everytime I click on the links I get booted
elba_NY: hi shoji.
Bob_(vegas): Alan clear out your cookies file then try again
Dave-n-Richmond: Mike, Roger. the deeper I get into this real estate thing the more I find your books to be spot on
Vee-UK: Ritchie - I guess here in the UK we are catching up to you guys as the tenants have better rites over here over landlords!
Mike_Summey: thayes, building an income stream you can live on takes time. It’s not a get-rich-quick proposition. With all the foreclosures in Hickory, I’d make very low offers and wait until one is accepted. No need to stretch yourself when there are plenty of deals to b ehad.
shoji: Hi
Roger_Dawson: Thanks, Dave!
Dave-n-Richmond: I had better get off line and spend some time with my wife. Night all
elba_NY: bye Dave
Dave-n-Richmond: thank you guys. Hopefully I’ll be telling you about another success soon.
Mike_Summey: pgarvey, I buy in NC & SC
pgarvey: Roger, Really, even with property managers in place?
hottiekindhart: Mike, nice to meet you. we are having hail & tornados in the Jackson area. talk to you next week. thanks for your advice
Roger_Dawson: pgarvey: I still think you’re better off to invest where you can drive by the property once in a while.
Mike_Summey: Goodnight Hottie. Look forward to you joining us again next week.
pgarvey: That’s it Mike?
Alan: What’s the best way to practice with the Generator before you buy it? Actual Clumsy Offer you try and ring up or is their some kind of instruction that may benefit you beforehand? I just want to start the best way
Mike_Summey: Goodnight Dave
elba_NY: There is a trial period Alan
ritchie: Mike, once you’ve aquired a property, what tricks do you have to get it occupied with a quality tenant fast?
Mike_Summey: pgarvey, that it! I don’t try to spread myself too thin.
pgarvey: Roger, Makes sense.
Vee-UK: Mike- Thoughts on off plan purchases with no money down?
Eric_NE: Elba, it’s going slowly. I really want to buy my first property this summer…..before the baby arrives in late September. I figure once the first one falls I’ll have some momentum going. How’s your investing going?
Alan: Yes 30 tries Elba, but what is the best use of it?
Mike_Summey: Alan, every field in the Offer Generator has help text that will pop up if you place the cursor on the field title.
Mike_Summey: ritchie, give it to a professional manager to do that.
Alan: Great, I guess I’ll plug in a few houses as I go….Am I supposed to know Insurance, etc beforehand?
Sandy: hello
elba_NY: Alan,In my case I was able to see how many different offers I could give that would still work for me. Different offers but only one goal: Cash flow.
Penny: everyone, if you wish to click on a link, copy link first, then minimize the chat site, paste the link, & you will not get booted.
Mike_Summey: Vee, be careful of no money down deals. There are many of them out there that you can buy but can’t affor to own once you buy them.
Alan: I know market info is crucial….I’m glad there are pop up pointers
Bob_(vegas): As usual great chat…..Night everyone
Roger_Dawson: Good night Bob
elba_NY: Nite Vegas
ritchie: Alan, regardless of what tool you use, even pen and paper, you should account for insurance, taxes, vacancy, propery manangement, maintenance and any other expenses. Or you are not looking at the whole picture.
Mike_Summey: Alan, you willhave to estimate some of the expenses. The more you do it, the better you will get. Consult a property manager, insurance agent, etc. in the beginning if you don’t feel comfortable.
elba_NY: Alan call any Insurance agent for a quote. Or do it online
pgarvey: Mike, Do you open an account for every property and do you require tennants to deposit their rents into an account?
Mike_Summey: Goodnight Bob
Alan: I checked into VA loans a bit but the guy said that NY wasn’t recognized as {something?} to thgem so I need to go to Chase or Wells Fargo…Is he correct?
Vee-UK: Mike - i guess its because of the false residential value and unpredictable rental?
Mike_Summey: pgarvey, no I only use one bank account, but I have a bookeeping account for each property.
Alan: No I am ritchie…I am just wondering if insurance can be an estimate or should it be actual {like on the house I am currently doing}
Mike_Summey: Alan, VA loans are not investor loans. You have to be qualified to get one.
elba_NY: Alan, the closer you get, the more realistic your numbers will be.
Mike_Summey: A qualified veteran.
Alan: You have to live in a VA loan house a year I believe…no down payment?
Alan: After that, I could rent out. Is this correct?
Mike_Summey: Alan, if a veteran sells you his home and allows you to assume his VA loan, I don’t think he can get another one until you pay it off.
pgarvey: Mike, you do your own bookkeeping?
Mike_Summey: pgarvey, yes I do. It’s one of my management tools. It makes me look at everything each month.
Alan: Hmmm I see… Only VA assumable nowadays?
Mike_Summey: Alan, FHA is also assumable.
ritchie: Mike, what is the typical amount of rehab you’ve had to do on your newly aquired properties? How do you shop for contractors?
elba_NY: They are just harder to find
Alan: I guess the VA loan would just be a residential for me then..That’s okay!!
Mike_Summey: ritchie, the two I just bought required no rehab. They were only 4 years old.
Roger_Dawson: Hi Sandy
Mike_Summey: dy
pgarvey: Mike, when you have a property manager managing your property what reports do you expect of him each month, quarter, yearly?
Mike_Summey: Hi Sandy
Mike_Summey: pgarvey, I get a complete report on each property that lists all income and expenses and has original receipts attached for any repairs that have been done.
ritchie: Mike, did someone bring you those deals or did you find them?
Sandy: Hi Roger and Mike. I’ve been here awhile. My screen stops, then spits out about 2 pages, then stops. I’m missing a lot tonite.
elba_NY: pgarvey we get ours at the end of the month.
Mike_Summey: Sandy, you’re a bit late tonight. Where are you located?
pgarvey: Mike, do you give your tennants the option to mail their rents or deposit to your account?
Alan: Penny, is that everyome ME or are others having problems?…Your technique didn’t work
Roger_Dawson: Sandy, do you have a lot of other software programs running. That can clog it up.
Mike_Summey: pgarvey, my managers handle all of that.
Sandy: Mike. I’m in Long Beach, Ca. I’ve been here since 5:15. No. No other programs other than Outlook Express. That may have been the problem.
Roger_Dawson: I need to run, folks, see you next week
elba_NY: pgarvey the way I learned in the book is that Property Managers manage the properties, your job is to look for the next deal.
Alan: I was asking if you were refering to what I told Mike or are you jusy trying to instruct other people
Mike_Summey: Sandy, sorry you are having problems. The transcript from tonight’s chat will be posted tomorrow. You can read it then.
Mike_Summey: Well, folks, it’s been another great chat but I’m going to have to run. See you all next week.
Sandy: Yep. I’ll need to do that. I gave out your website (again) to my RE Investing club which is growing by leaps and bounds.
Eric_NE: See ya next week Mike!
Alan: hmmm
elba_NY: Thank you Mike good nite
Mike_Summey: Goodnight all!
steve: goodnight all
elba_NY: Eric Penny everyone good nite to you too. See you all next week.
pgarvey: Mike, Doesn’t the property managers have their own account where they deposit the rents for your properties?
Eric_NE: See ya…
Penny: goodnight elba, enjoy the rest of your evening with your family.
Penny: goodnight all.
Vee-UK: Alan - your turn to lock up toniht!
shoji: Hi Alen, all investers I know avoid them. they say to may hiches
Alan: LOL
shoji: Va loans that is
Alan: shoji…what are thay?
Alan: Looking to own a home with one
Alan: Vee…we did last week, didn’t we!
shoji: I’ll ask and get back on it next week
Alan: thanks
shoji: Welcome
Vee-UK: Alan - a couple of weeks ago - your loosing it mate!
Alan: I did it two weeks in a row!
Alan: You just be up on it if you wre here Mate!
shoji: Any self-directed Roth IRA people here
Alan: should
jepcontractor: yes ira, but not a roth
Vee-UK: Alan - its now 2.09am time for bed, need my beauty sleep! So night night mate :0
Alan: Okay, later
Alan: So Penny, what are you all about. Serious Investor or a beginner?
shoji: I’m told there are ways to send investment proceeds into the IRA
Alan: That’s what I figured
jepcontractor: use a no-load mutual fund family such as Vanguard
shoji: I guess it’s good night too! Bye
shoji: Yea vanguard
shoji: we used them for some loansd
jepcontractor: my first time, how do you exit chat?
shoji: Thanks for the input I’m off even though it’s still early here, I’m a poor at the keyboard
shoji: good night

» Filed Under Chat Transcripts

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